You get an email to your inbox. The letter says: ”Just invest two thousand dollars today and watch your investment grow 100-fold!”. Obviously, that line is meant to tempt you to read further. The letter will continue with terms such as “the next Apple” and “ripe for a buyout”. Sounds enticing, right? What should you do?
If you don’t do intensive research in to these stocks, or don’t really have money to lose on them, the answer is simple: don’t buy the stock. If you buy a speculative stock, you’re basically throwing the money away and hoping that maybe someday you will be rewarded. Football fans would call it a Hail Mary.
If you feel that you could afford to part with a certain amount of money, start doing research. Go to the company’s website and look at financial reports. Ask questions and look up the ticker symbol. Look for any clue that there might be something fishy going on.
Once you’ve ascertained that you can afford to throw away the money and you don’t think it’s a scam, go ahead and invest. Do not put a lot of money in to it. Under no circumstances should your speculative investments comprise more than twenty percent of your portfolio and in my opinion even that is pushing it.
Do you want some ideas for speculative stocks to check out? Here are a few:
1. Amarok Resources (OTCBB:AMOK).
2. Gold American Mining Corp (OTCBB:SILA).
3. Dyadic International (OTC:DYAI).
4. Amerilithium Corporation (OTCBB:AMEL).
Good Investing!
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